The Minister for Justice, Michael McDowell, has said he intends to set up a regulatory commission to govern casinos.
Mr McDowell previously suggested that he would be in favour of closing down such clubs, a move which was strongly criticised by casino owners who claimed hundreds of jobs would be lost.
But speaking to RTÉ News he said he has now decided against this.
There are around 20 casino-style clubs in Ireland and although technically illegal, under the 50-year-old act which governs them it is difficult for gardaí to close them down.
Last night the minister said that following consultation with his Government colleagues, he has now decided to regulate the industry.
He said Ireland is only one of two countries in the EU which bans such clubs.
